Andhra Pradesh grapples to fulfil job promise

HYDERABAD: The AP government has been struggling to fulfil its ambitious poll promise of ‘one job per family’ despite roping in major multi-national companies. After two-and-a-half years in the government, TDP could provide not more than 50,000 jobs as against the pre-poll promise of creating 10 lakh jobs in the manufacturing sector.
Some of the major investments received in the last two years include Walmart, Dalas, Sun Edition, Ashok Leyland, Bharat Forge, Essel Group, Suzlon Energy and Linde Group. However, they have not yet started their operations in the state.
The AP government had set a target of developing 5,000 startups and 100 technology incubators by 2019. Introduction of the new industrial policy to bring down the approval time for business to an average of 14 days in 2016-17, compared to an average of 21days in 2015-16, had succeeded in attracting foreign direct investment into the state.
The government could convince 41international companies and 328 Indian companies to make an investment of about Rs 4,800 crore in AP. But, only US-based Mondelez International (Cadbury) opened its manufacturing unit in Chittoor district.
“Many of these units are still bargaining for more incentives and free infrastructure. Some of them are even threatening to move to other states. These issues will be resolved at a higher level,” said a senior official in the investment and infrastructure department. The companies, which entered into MoUs with the state government, are still finding it difficult to get the necessary infrastructure, including power, water and road connectivity. There are several complaints over lack of cooperation at the ground level resulting in the delay.
Thinking that tourism will be the next big thing, the AP government also entered into agreements with 16 companies that agreed to invest Rs 4,000 crore. It also released the new tourism policy, which projected creation of 50,000 jobs every year.
But in reality, none of the projects has started. In the last 26 months, only 2,000 jobs have been created in the tourism sector.
The state government also launched a Skill Development Corporation to train local talent in various skills.
As many as 90,000 people were imparted ‘employability’ skills. Interestingly, most of them refused the offers saying that the salary offered was meagre. Only 20,000 people took up jobs in the construction sector.
AP ranks 10 in the list of unemployment rate in the country. About 30 per cent of people in the state do not have jobs in urban areas.
The TDP stormed to power in the May 2014 elections after it promised jobs to all unemployed in the state. It had also promised unemployment allowance.